Agency Report –
Dusseldorf – The leader of Germany’s largest steel company believes US tariffs will put “further pressure” on European markets already hampered by overcapacity and high energy costs.
Dennis Grimm, from Thyssenkrupp Steel Europe, told the German radio station WDR on Wednesday that the duties announced earlier this week by US President Donald Trump would have only a “minor impact” on his company directly.
However, the tariffs are likely to have a damaging effect on European markets due to increasing overcapacity, Grimm argued.
The United States imported 23 million tons of steel from Europe last year. “These quantities will certainly be largely pushed into the European Economic Area, thereby putting further pressure on our markets here,” said Grimm.
The executive highlighted that German conglomerate Thyssenkrupp’s steel division is facing a difficult situation in Germany, where energy prices are currently two to three times higher than in China and the US.
The Dusseldorf-based company has an annual production capacity of 11.5 million tons of steel but has only sold around 9 million for several years due to pressure from imports from low-wage countries.
Grimm called on the next German government to act quickly to reduce energy costs and introduce “reliable border protection” to protect against dumping.
“Above all, we need predictability,” said Grimm.
Thyssenkrupp Steel is “very clearly committed to Germany as a business location” and wants to continue to be the country’s largest steelmaker in the future, Grimm said.
The subsidiary currently employees some 27,000 workers, but 11,000 positions are to be cut or outsourced under a major restructuring programme.
